1 / 17

Growth and Opportunity Board Meeting

Growth and Opportunity Board Meeting. Presentation on VRIC Strategic Directions to Advance Innovation-Led Growth Across the Commonwealth. February 13, 2018. Legislative Charge for Study :

muncie
Download Presentation

Growth and Opportunity Board Meeting

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Growth and Opportunity Board Meeting Presentation on VRIC Strategic Directions to Advance Innovation-Led Growth Across the Commonwealth February 13, 2018

  2. Legislative Charge for Study: Develop a cohesive and comprehensive framework through which to encourage collaboration between the Commonwealth’s institutions of higher education, private sector industries and economic development entities in order to focus on the complete life cycle of research, development and commercialization. Project Purpose, Objectives and Approach The goals of study to: • Evaluate Virginia’s current capabilities in the commercialization of its academic R&D • Assess Virginia’s future opportunities and capacities for commercializing the results of its academic R&D • Develop recommendations regarding where and how the Commonwealth should direct its resources to accomplish VRIC’s mandate

  3. But Virginia has not been performing well in innovation-led development through the recent period of economic growth Business as usual will not work. Underlying challenges requires Virginia to find a new way forward. Virginia has a sizable base of innovation-led assets, with core technology competencies supporting strategic growth opportunity areas Key Findings

  4. Advanced Industry Jobs in 2016: • Total Research Funding From Industry, Universitiesand Federal Labs in 2015: • Entrepreneurial Energy – 2106 Venture Capital Investments: Virginia has a sizable base of innovation-led assets Virginia ranks 4th in venture capital per state GDP Virginia ranks 21st in research funding per state GDP

  5. Line-of-Sight Assessment • Identified 4 Strategic Growth Opportunities that Leverage Multiple Core Competencies Found in Virginia Significant Strategic Growth Opportunities Identified from Virginia’s Sizable Research Assets

  6. Lagging Growth in Advanced Industry Jobs from 2010-2016: • Declining Total Research Funding, 2010-2015: • Venture Capital Growth Off Pace, 2010-2016 But Virginia has not been performing well in innovation-led development since 2010 economic recovery

  7. Most of the 13 Specialized Advanced Industries found in Virginia are lagging U.S. growth Closer Look at the Performance of Specialized Advanced Industries in Virginia

  8. Virginia lagging nation in growth of company-funded industry R&D, 2010-2015: Virginia stands at 1/3rd national level company-funded industry R&D in 2015 (per $1 billion GDP): Challenge: Addressing low levels and lagging growth of industry research and development to focus on commercializing innovations, with focus on strategic growth opportunity areas

  9. Strategic Objectives: • Raise industry R&D activities in commercializing technologies • Target the four strategic growth opportunities identified through the line-of-sight assessment in Virginia • Leverage and enhance translational research capacities of universities and federal laboratories to support company-funded research and development activities Challenge: Addressing low levels and lagging growth of industry research and development to focus on commercializing innovations, with focus on strategic growth opportunity areas

  10. Policies at Virginia universities appear fairly consistent with national best practices in terms of how to handle intellectual property, conflict of interest and faculty incentives • Active technology transfer efforts found across universities, generally measuring up to national averages in key measures for major research universities but some areas lagging • Plus, recent years have shown continued improvements in many measures of technology transfer activity. Challenge: Strengthening university capacities in technology transfer, commercialization and industry partnerships Technology Transfer Metrics for Virginia’s Three Largest Research Universities Reporting to AUTM Compared to National Average of All Universities Reporting, Average 2010-2016, Per $10 million of University Research

  11. Situational Assessment: Room for Improvement Assessment of Technology Transfer and Commercialization Policies and Practices: • 34 recommendations for improving technology transfer and commercialization, with its main areas of focus on advancing translational research and commercialization practices with closer interactions with industry in: • Technical and market reviews • Invention lead prospecting with proven entrepreneurs • De-risking university technologies • Streamlining processes • Better connecting to Virginia entrepreneurs and companies  focus on value creation Challenge: Strengthening university capacities in technology transfer, commercialization and industry partnerships • Industry interest from interviews: • Creating more effective and business-friendly approaches shared across all universities in Virginia to reduce barriers • Prioritize value creation for Virginia’s economic development over revenue maximization

  12. Situational Assessment: • Lower level of industry funding for university research, but recent growth shows promise: • A closer examination finds lack of close relationships with Virginia industry in technology transfer and commercialization • In university patents developed with industry funding in FY 2017, 35 out of 40 patents involved companies from out-of-state. • In citations of university patents, 303 out of 327 industry citations of Virginia university patents were by industry inventors located outside of Virginia. • Similarly, for Virginia-based federal laboratories/agencies, 417 industry citations out of 466 were by industry inventors located outside of Virginia. • In licensing of university patents, 108 out of 137 licenses issued in FY 2017 going to out-of-state companies. Challenge: Bridging the disconnect between university research and Virginia-based company innovation Industry Funding Share, 2015: Growth in Industry Funding 2010-15:

  13. Strategic Objectives: • Facilitate pro-active outreach and high touch, customer service to Virginia companies of university research capacities and technologies • Incentivize industry-university applied research projects Challenge: Bridging the disconnect between university research and Virginia-based company innovation

  14. Situational Assessment: • The number of companies funded in Virginia receiving formal venture capital has remained relatively flat. • The 2010-2016 average of 76 companies had a range from a high of 87 in 2012 and a low of 70 in 2013. • One of the biggest differences in Virginia from the nation is the low share of venture investment going into early stage rounds of funding Challenge: Shoring up Virginia’s entrepreneurial development system to generate more shots on goal and high-growth companies Venture Capital Investments by Investment Stage, Virginia and U.S., over 2010-2016 period

  15. Strategic Objectives: • Recognize entrepreneurial development is a very localized phenomenon, where local research and development (R&D) know-how and entrepreneurial culture needs to come together for success. • Enable regions to have access to key tools – entrepreneurial support services and locally-based seed capital funds – but allow local stakeholders to have key role in governance and oversight Challenge: Shoring up Virginia’s entrepreneurial development system to generate more shots on goal and high-growth companies

  16. Proposed Actions • 8 Baseline actions for VRIC to consider in use of current and proposed VRIF resources in 2019-2020 biennium • 4 Enhanced actions for the Commonwealth to consider in advancing innovation-led development Strategic Priorities Recommended Action Plan Being Considered by VRIC Strategy 1: Pursue strategic growth opportunity areas to catalyze stronger advanced industry growth Strategy 2: Strengthen university technology transfer and commercialization capacity • What distinguishes VRIF efforts from other statewide innovation efforts is its focus on: • Raising university translational research and commercialization capacities, connecting it more systematically with market-driven processes and focusing it on value creation for economic development in the Commonwealth. • Focusing on industry and university research collaborations across translational research, applied research, and technology transfer and commercialization. Strategy 3: Bridge the disconnect between university research and Virginia-based company innovation Strategy 4: Strengthen Virginia’s regionally-based innovation capacities

More Related